Bertelsmann Annual Results 2009 Investor Conference Call

Transcription

1 Bertelsmann Annual Results 2009 Investor Conference Call March 23, 2010 Dr. Thomas Rabe, Member of the Executive Board and Chief Financial Officer, Bertelsmann AG

2 Summary and highlights Solid performance in a difficult year FY 2009» Leading market positions maintained or expanded» Cost-cutting measures of some 1 billion» Earnings in second half-year above previous year, positive net income» High cash conversion rate, significant debt reduction 2

3 Group key figures High profitability, strong operating free cash flow, significant debt reduction in millions 2008 Change 2009 Revenues 16, % 15,364 Operating EBIT 1) 1, ,424 Net income BVA Operating free cash flow 2) 1, ,771 Cash conversion rate 2) 105% +20%-P. 125% Net financial debt -3, ,793 Economic debt -6, ,024 Leverage factor ) Earnings before interest, taxes and special items (especially impairments and restructuring expenses) 2) Adjusted for one-time effects 3

4 Bertelsmann 2009 Revenues diversified by source and region By sources 2009 (previous year) By regions 2009 (previous year) Direct-toconsumer 12.7% (12.3%) 26.4% (28.1%) Advertising U.S. 12.5% Other countries (11.5%) 4.8% (4.5%) 35.0% (36.0%) Germany Services 36.4% (36.1%) 24.5% (23.5%) Content Rest of Europe 47.7% (48.0%) 4

5 Divisions Decline of advertising-funded businesses, high profitability Organic growth Revenues (in billions) -7.5% -1.4% -9.6% -3.2% -7.9% Operating EBIT (in millions) RTL Group Random House Gruner + Jahr Arvato Direct Group ROS 16% 15% 8% 8% 8% 8% 7% 7% 2% 2% 5

6 Net income Group profit despite special items and normalized tax expenses in millions 2008 Change 2009 Operating EBIT of divisions 1, ,506 Corporate/consolidation Operating EBIT 1, ,424 Special items EBIT Financial result Income taxes Earnings from discontinued operations Net income

7 Special items High impairments and restructuring expenses in millions Impairments/other RTL Group Arvato Gruner + Jahr Direct Group Random House Other Restructuring Gruner + Jahr Arvato RTL Group Direct Group Random House Other Capital gains/losses Special items

8 Cash flow High operating cash flow, cash conversion rate significantly above previous year in millions Cash flow from operating activities 1,789 1,777 Income taxes paid Investments in intangible assets and property, plant and equipment Proceeds from disposal of intangible assets and PPE Payment for Napster and IP settlements Restructuring payments Operating free cash flow 1,654 1,763 One-time effects Operating free cash flow (adjusted for one-time effects) 1,624 1,771 Cash conversion rate (adjusted for one-time effects) 105% 125% 8

9 Divisional CCR/BVA High cash conversion rate throughout the group, Group BVA positive due to lower cost of capital Cash Conversion Rate in percent n.a. BVA in millions RTL Group Random House Gruner + Jahr Arvato Direct Group Total Group 9

10 Financial status Significant reduction of economic debt Rating BBB Outlook stable Baa2 Outlook stable Leverage Factor Target < Economic debt (in millions) Net financial debt Profit participation certificates Operating Leases Pension provisions 7,720 4,282 6,627 3,445 6,024 2, ,174 1,067 1,119 1,558 1,409 1,406 FY 07 FY 08 FY 09 Coverage Ratio Target >4.0 Equity Ratio in % Target >25%

11 Profit participation capital Declining attractiveness as a financing instrument History of profit participation capital Reasons for partial buyback in from 2017 Treated as equity, issued for profit-sharing purposes, listing on stock exchange IFRS implemented, treated as liability New profit-sharing policy Put option for investors Simplification of capital structure Relatively high interest costs High liquidity position Debt redemption High maintenance, need for explanation outside of Germany 11

12 Liquidity Liquidity already covers maturities until 2012 in billions Term structure capital market financing < 1 year 17% > 5 years 1 to 5 years 37% 4.4bn 46% vs. Liquidity 12/31/2008 Issuances Maturities Change in cash Liquidity 12/31/2009 PPC buyback Liquidity after PPC buyback Maturities until 2012 Unutilized lines of credit 12

13 Outlook Continued stabilization expected in 2010 Outlook 2010» Economic stabilization» Continued optimization of core businesses, continued portfolio review» Revenues and operating EBIT at previous year s level, significant increase in net income» Focus on cash flow, continued debt reduction 13

14 Q&A-Session March 23, 2010 Dr. Thomas Rabe, Member of the Executive Board and Chief Financial Officer, Bertelsmann AG